Is Canada Post Too Expensive for Your Ecommerce Business?

Key factors when running an online retail business and selling to customers in Canada are the shipping speed and cost.   

Luckily, there are plenty of international and local shipping carriers that offer both domestic and overseas shipping at affordable rates. 

It means you don’t have to depend only on global shipping giants like UPS, FedEx, and DHL, you can hire the services of a smaller yet reputable shipping carrier and pay relatively cheaper shipping prices. 

These days, customers expect next-day or overnight delivery because of the high benchmark some eCommerce giants have set. 

However, the flip side of offering faster shipping is higher costs, potentially reducing a major chunk of the profit margin. In Canada, Canada Post offers various shipping options at affordable rates.

Canada Post is the largest commercial courier for high-volume shipping. The carrier started its operations in 1867 and is the only shipping company that sends mail and packages to all the addresses in the country.

Is Canada Post Too Expensive for Your Retail Business?

Canada Post is the country’s national courier with a vast network across Canada and offers efficient shipping services. 

Besides providing extensive domestic shipping services within the country, Canada Post also ships overseas to more than 190 countries. 

Some of the popular domestic shipping services of Canada Post are below:

• Regular package delivery takes between 2 and 9 business days;
• Priority shipping guaranteeing next-day delivery;
• Xpresspost shipping in 2 business days or less;
• The estimated delivery timeframe of the flat-rate service is 1 to 7 business days.

Canada Post offers the following international shipping services:

• Priority Worldwide with guaranteed delivery in 2 to 3 business days;
• Xpresspost International shipping takes 4 to 7 business days; 
• Xpresspost USA with guaranteed delivery in 2 to 3 business days;
• Tracked Packet USA delivers packages between 4 and 7 business days.

Shipping in Canada is expensive, express shipping or not. Now, the question is whether Canada Post would be costly for your business or not. Over the years, the shipping prices of Canada Post have been affordable. However, the increase in fuel surcharge has impacted shipping rates.

Also, how much shipping charges you pay will depend on package size, weight, delivery distance, and timeframe. 

Features of Canada Post Shipping

The key features of Canada Post shipping are below:

• Flat Rate Fees: Get shipping boxes comprising 12 packs from Canada Post online at flat rates. Any shipping box weight less than 5kg will ship. Shipping boxes are in different sizes to meet your shipping needs.

• Collection on Delivery: This feature allows customers to pay while collecting their parcels at the time of delivery. It is possible to collect up to $5,000 when delivering a package. A sender needs to pay the COD fee of $7.25 in addition to the shipping fees.

• Tracking Feature: Canada Post’s free tracking feature helps customers track their packages. Customers receive updates about their delivery via email, phone, or SMS.

• Overseas Shipping: Canada Post also ships parcels to overseas locations, including the US through air and surface shipping.

• Signature Confirmation: Canada Post has rolled out signature confirmation with shipping such as Flat rate, Priority, and Xpresspost. It means the recipient will get a package after signing it. Signature confirmation is available in both digital and hard copy.

• Insurance: Canada Post offers basic insurance covering liability for shipping services. The liability coverage is up to $100 for domestic and international shipping.

Shipping Options and Costs of Canada Post

Regular Shipping

Regular parcel shipping by Canada Post has a timeline of 2 to 9 business days for domestic addresses in major urban centers. 

If you send packages from non-major or remote locations, it will take up to 14 business days. Also, there won’t be any on-time delivery guarantee. 

When it comes to cost, a 10 kg package to send from Toronto to Montreal with the size 24.1 cm x 16.5 cm x 8.9 will cost $33.71 in Regular Parcel.

Besides, to send parcels through Regular Parcel, you need to print shipping labels, and you may have to buy a 500g envelope that will cost $5.47. 

Opting for Regular Parcels is ideal for small businesses that do not send bulk shipments frequently and can’t get the bulk discount. 

Key Features of Regular Shipping:

• Regular shipping is Canada Post’s cheapest shipping service for domestic deliveries.
• Package delivery to local addresses could take up to 2 business days, deliveries to regional addresses could take up to 5 days, and the estimated delivery timeline to national addresses is 9 days.

XpressPost

XpressPost of Canada Post provides next-day shipping to local addresses in major urban centers. 

The estimated delivery timeline for national shipments is 2 days. Delivery to non-major and remote centers takes between 2 and 8 business days. XpressPost also integrates a feature called “Deliver to Post Office.”

Considering the same example above, a package weighing 10 kg from Toronto to Montreal, will cost $39.01. 

Buy Prepaid XpressPost shipping and envelopes from a designated post office in Canada. You need to create a commercial account with Canada Post to receive discounted rates. 

To calculate the shipping costs for XpressPost, you have to consider the package weight, dimensions, shipping origin, and destination.

The following are the origin codes: 

• Labrador, Nova Scotia, New Brunswick, Newfoundland, and Prince Edward Island (Zone A)
• Ontario and Quebec (Zone B)
• Alberta, British Columbia, Manitoba, and Saskatchewan (Zone C)
• Northwest Territories and Yukon (Zone D)

Based on the Origin Code, you can check the Rate Code depending on the destination zone.

These costs will be payable when you purchase a shipping service directly from Canada Post. If you use an integrated shipping automation platform, you can get attractive discounts from different shipping carriers.

Key Features of the XpressPost Shipping:

• It takes between 2 and 8 business days to deliver packages with a guaranteed delivery;
• Tracking feature available;
• Delivery notifications with the latest order updates;
• Delivery service to post office box;
• Liability coverage of $100;

Priority

Canada Post Priority shipping is the fastest option of the courier. A package gets delivered through Priority shipping by the next day, even to national addresses. 

Shipping orders from non-major or remote locations takes 2 to 8 business days to reach the destination.

Priority shipping cost to Canadian addresses depends on the destinations. Shipping fees start at around $14.73. Again, sending a package weighing 26 kg with the size 100 cm x 60 cm x 20 cm from Toronto to Montreal will cost $98.25. 

You can get to know about the cost of Priority shipping according to the package size and destination mentioned on the Canada Post website.

If you need to send orders to the US or any other overseas location through Priority shipping, check the destination Rate Code for prices.  

When sending a shipment, remember that if you are a contract customer, you can buy prepaid envelopes to reduce the shipping cost in specific situations.

Buying prepaid envelopes, however, may not benefit you if the packages you send have different sizes. You can highlight on your website about the shipping options and the respective charges to help customers. 

Key Features of Priority Shipping: 

• Priority shipping is one of the fastest domestic shipping services in Canada;
• Next-day delivery is guaranteed;
• Shipping costs are on the higher side;
• An ideal choice for time-sensitive shipping;
• Liability coverage is available up to $100;

Canada Post Shipping Rates

Domestic Shipping:

International Shipping:

UPS vs. FedEx Canada vs. Canada Post Shipping Rates Comparison

Note: Shipping rates are based on shipping a 10 kg package. These rates are subject to changes.

Read our blog on Ultimate guide to Canada Post shipping rates to get more information.

More Affordable Shipping Options to Canada Post 

Over the years, Canada Post has been the preferred choice for businesses due to its affordable shipping options and efficiency. However, in recent times due to the consistent increase of fuel surcharge, shipping costs have increased significantly.

Besides, there have been issues like having a backlog of orders during the peak holiday season and delivery delays, leading to unsatisfied customers. 

Because of these issues, you can opt for other carriers that provide shipping services in Canada. 

Although shipping giants like UPS, FedEx, and DHL control over 80 percent of the shipping industry in North America, other reliable carriers provide fast and affordable domestic and international shipping services. 

The key benefits of hiring alternative carriers are their ability to manage a high volume of packages, personalized services, and familiarity with the local market. 

Smaller eCommerce stores in Canada can get plenty of options and discounted shipping prices to deliver their orders to domestic addresses and foreign countries.

Here is a list of alternative shipping carriers in Canada:

ShippingChimp

ShippingChimp is the best alternative shipping carrier to Canada Post. ShippingChimp offers up to 53% savings in shipping costs when compared with national carriers such as Canada Post. Moreover the shipping prices start at $5.11. In addition, unlike Canada Post, ShippingChimp offers fully tracked shipping options along with real-time notifications of order statuses.

ShippingChimp rates for packages shipped in Toronto are as follows:

1. Shipping 1 Lbs package costs around $5.75 CAD which is 60% lower than Canada Post. 

2. Shipping 2 Lbs package costs $5.84 CAD. Businesses save 65% in shipping costs when compared to shipping with Canada Post.

3. With ShippingChimp, shipping a pair of shoes costs around $6.23 CAD. When compared with Canada post, that is 63% saving.

Canpar

Canpar is the second-biggest shipping company in Canada and functions through its 62 delivery hubs in the country. 

Canpar specializes in domestic ground shipping and expedited shipping between major cities in Canada such as Calgary, Toronto, Montreal, and Vancouver to the US. 

Hiring Canpar can be useful for your business if you ship parcels frequently to the US. Additionally, Canpar ships orders to more than 200 countries.

The most common shipping services of Canpar are below:

• Canpar Ground delivers parcels in 1 to 4 business days;
• Canpar Overnight delivers parcels in 1 to 6 business days;
• Canpar Letter Select delivers parcels in 2 to 10 business days;
• Canpar International delivers parcels in 2 to 10 business days.

Purolator

Purolator is a leading carrier in Canada that provides fast and affordable domestic and overseas shipping services. Check out Purolator vs Canada Post, which carrier performs better for your eCommerce store.

The carrier ships packages to nearly 99 percent of addresses in Canada and provides economy, same-day, or next-day shipping. 

Purolator offers international shipping service in alliance with UPS and ships orders from the Canadian border to foreign destinations. Also, Purolator offers bulk shipping discounts that make your shipping affordable. 

Purolator offers the following shipping services:

• Purolator Ground delivers parcels in 2 to 4 business days.
• Purolator Express delivers parcels in 1 to 2 business days.
• Purolator Express International delivers parcels on the second business day.

DTDC Canada 

DTDC Canada has been offering shipping services for more than 25 years in Canada and delivers parcels to over 10,000 locations. The carrier also provides shipping services to more than 240 countries. 

You can get personalized services at affordable rates from DTDC Canada to ship orders and warehouse fulfillment. 

DTDC has also integrated automation to reduce needless operating costs. The carrier’s warehouses have a temperature control facility and 24/7 security to keep the packages safe.

DHL 

DHL is one of the shipping giants that provide quality domestic and international shipping in Canada. 

A unique feature of DHL is the company ships packages to even several banned countries, such as Cuba and Iran at a cheaper rate than other leading carriers. 

Although DHL’s network is not as vast in North America as UPS and FedEx, it has made its mark with quality shipping services. 

Some of the shipping features of DHL are a free tracking facility, delivery confirmation, shipping insurance, Saturday delivery, and others.

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Revathi Karthik

Rev leads marketing at ShippingChimp.She is happiest when solving eCommerce business problems using innovative technology. She loves hot coffee and cold winters.

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